Further re Disposal

European Motor Hldgs PLC 2 July 2002 EUROPEAN MOTOR HOLDINGS plc ("EMH") DISPOSAL OF MERCEDES-BENZ PASSENGER CAR BUSINESSES The Board of EMH announces completion of the previously announced disposal of the Group's Mercedes-Benz passenger car businesses to DaimlerChrysler UK Retail Limited ("DCUKR"), a wholly owned subsidiary of DaimlerChrysler UK Limited. EMH has operated Mercedes-Benz passenger car dealerships in London through its subsidiary Normand Limited ("Normand"). With effect from 1 July 2002, DCUKR has acquired the business and certain assets of those dealerships from Normand. In addition, DCUKR has paid Normand a Territory Release Payment ("TRP") in compensation for the termination of its Mercedes-Benz passenger car franchises. The employees of the businesses have been transferred to DCUKR. DCUKR has agreed to lease the Group's freehold property at Park Royal for a period of between one and two years and is also taking short term subleases of the majority of the other properties used by the businesses. The rental for the Park Royal site and its fixed assets has been agreed at £720,000 per annum. During the financial year ended 28 February 2002, the business disposed of contributed £1.6 million to the Group's profit before taxation. The net assets disposed of had a book value of £0.3 million. The total consideration, including the TRP of £4.05 million, amounts to £4.4 million and has been satisfied in cash. Together with the advance payment of rents and settlement of trading amounts due to Normand by the DaimlerChrysler group, the total cash inflow from the disposal amounted to £5.7 million. EMH has already embarked upon the expansion of its London Volkswagen operations, which, together with other acquisition opportunities and EMH's stated intention to continue to repurchase its own shares at appropriate times will ensure that surplus funds, including the proceeds from this disposal, are invested for the benefit of the company and its shareholders. As stated at its Annual General Meeting on 21 June, EMH's trading continues to be ahead of last year. The Board remains confident about the prospects for the current financial year. Commenting on the disposal, Richard Palmer, Chief Executive of EMH, said: "We are pleased with the final outcome of our negotiations. The Group is now in an exceptionally strong financial position and the Board is confident that the investment now released from the Mercedes-Benz dealerships can be applied to enhancing the Group's future performance." Enquiries: Richard Palmer Chief Executive Ann Wilson Finance Director European Motor Holdings plc 020 8961 2525 This information is provided by RNS The company news service from the London Stock Exchange